Problem 16-04A a-c Heidebrecht Design acquired 20% of the outstanding common stock of Pharoah Company on January 1, 2020, by paying $669,000 for the 44,600 shares. Pharoah declared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Pharoah reported net income of $338,500 for the year. At December 31, 2020, the market price of Pharoah common stock was $25 per share. Prepare the journal entries for Heidebrecht Design for 2020 assuming Heidebrecht Design cannot exercise significant influence over Pharoah.

Heidebrecht Design acquirec 20% of the outstanding common stock of Pharah Company on January 1, 2020, by saying SG69.000 for the 44,600 shares. Fharcah desared and paid $0.40 per share cash dividends on March 15, June 15, September 15, and December 15, 2020. Pharoah reported net income of 5338,500 for the year. At December 31, 2020, the market price of Pharoah common stock was $25 per share. Prepare the joumal entries for Heidebrecht Design for 2020 assuming He debrecht Design cannot exercise significant influence over Pharoah. (Record fournal entries in the order presented in the problem. Credit account titles al automatically Indented when amount is entered. Do not Indent manually. If no entry is required, select "No entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Debit Credit Jan. 1 V Stock Investments 699,000 Cash 659,000 Mar 15 Cash 17,840 Dividend Ravenue 17,840 SLOW LIST OF ACCOUNTS Indicate the balance sheet and income statement account balances at December 31, 2020, under esch Tethod of accounting. Cost Equity Method Method Stock Investments $ $ Dividend revenue Unrealized gain income Revenue fram sock investments SHUW LIST OF ACCOUNIS Prepare the journal entries for Heidebrecht Design 2020, assuming Heidebrecht Design can exercise significant influence over Pharoah. Use the equity method. account tities are automatically Indented when amount is entered. Do not Indent manually. Ir na entry is required, select "No entry for the accou Date Account Titles and Explanation Debit Credit